Kenya targets $62 billion from rare earth mine near 500 farms

A 2013 projection valued the potential gross revenue of the Mrima Hill mineral project at $62 billion over 23 years. The estimate, cited by mining news outlet Extractives Daily, was based on commodity prices at the time and excluded development and operating costs. It did not specify the portion of that revenue Kenya would retain.

Kenyan officials are moving to develop the site, which contains niobium and rare earth elements. Mining Minister Hassan Joho told The Associated Press that a technical committee is currently evaluating five proposals. He stated that a decision will be announced within two to three weeks. The ministry has not disclosed the nationalities of the bidders due to confidentiality rules, but two groups have publicly confirmed their participation.

An Australian company, RareX, said its consortium with Iluka Resources submitted a technical and financial proposal on Oct. 21. Critical Metals Corp., a Nasdaq-listed firm, stated in July that its consortium was shortlisted for the final stage of bidding. Joho said the government views local mineral processing as a method to expand the economy. He set a target to increase mining's contribution to gross domestic product from approximately 1% to 10% within ten years.

Local stakeholders question the speed of the process and the clarity of the information provided. Justus Mwero, chairman of the Mrima Farm Owners Community-Based Organization, said his group of about 500 registered farmers has received little detail on the mining location or its impact on livelihoods. “We haven’t been informed about the process at all,” Mwero said. “We don’t know how people are going to be looked after, or what impact the project will have.”

The site also holds cultural significance for the Digo community. Mrima Hill contains a sacred forest, known as a kaya, where ancestors are buried. The forest was designated a national monument in 1992. Masoud Suleiman Mwarizo, chairman of the Mrima Hill Digo Community Trust, formed in 2025, said the community’s traditions are organized around the site. “All our ancestors are buried here. We will refuse any digging of the hill,” Mwarizo said.

Farmers worry that relocation may force them onto less productive land. Mwero noted that the current land is fertile. “If we are relocated to less fertile land, hunger could strike us,” he said. Rama Bindo, treasurer of the Digo Community Trust, added that residents without formal title deeds are vulnerable to land grabbing. “Not all farmers have title deeds to prove ownership of their land, and that makes it easy for land grabbing to happen,” Bindo said.

Legal challenges are underway in the courts. The Centre for Litigation Trust filed a petition on June 22 in the High Court in Kwale. The group asked the court to suspend a proposed Kenya-U.S. agreement to develop the minerals. The petition argued the bidding process lacked transparency. The government has not publicly explained how that agreement relates to the current tender. A ruling on a jurisdictional objection is scheduled for Nov. 6, and no court order currently blocks the agreement's implementation.

Under Kenya’s Mining Act, a license holder must sign a community development agreement before starting operations. Landowners must be compensated before mining begins. Harry Kimtai, principal secretary at the Mining Ministry, said communities will be encouraged to engage directly with the winning company. He stated the government will monitor compliance if disputes arise.

Questions remain about extraction methods and environmental impact. Fakii Omar of the Kwale Mining Alliance asked if the project would use open-pit mining and what health effects might follow. RareX said its proposal includes securing community support before mining begins. The company also proposed further study to determine if the deposit supports underground mining. The National Environment Management Authority did not respond to questions about the environmental assessment process.

Mwero said residents want a formal forum to discuss their concerns. “We want an open forum to discuss our concerns. We are the custodians of this land, and we should be the ones negotiating over it,” he said.